The Pakistani rupee (PKR) reversed gains and posted losses against the US Dollar today.
The Pakistani rupee was largely stable throughout intraday trade today with the interbank rate gaining over 60 paisas to reach 283.22 by 11 AM. By 1:25 PM, it stayed at this level.
At close, the PKR depreciated by 0.03 percent and suspended movement at 283.91 after losing seven paisas today.
The rupee ended the day with losses after markets last week ended on a positive despite the government forecasting negative macros in the coming months.
Currency dealers said markets underperformed today with the new week reigniting last week’s intensity of the prevalent economic crisis has particularly been amplified since early 2022 and has seen rapid PKR devaluation, record inflation, and rumors of default.
The current political uncertainty and economic shortfalls have continued to contribute to the rupee’s weakness. Today’s marginal drop suggests investors intend to keep profits in foreign currency grades unless absolutely necessary for conversion.
The deadlock with the International Monetary Fund (IMF) is making things even worse. The issue of external financing constraints is still a bit uncertain despite recent arrivals of assurances. The uncertainty is contributing to more exchange rate instability, and feeding bears in the economy. Low capital inflows, further degradation in the exchange rate, and inflationary pressures will push away unless adjustments are made to address these issues.
Pertinently, the rupee is down nearly Rs. 54 since January 2023. Since April 2022, it is down over Rs. 101 against the greenback. As per exchange rate movements witnessed today, the PKR has lost seven paisas against the dollar.
The PKR was all red against most of the other major currencies in the interbank market today. It lost one paisa against the UAE Dirham (AED), three paisas against the Saudi Riyal (SAR), 11 paisas against the Pound Sterling (GBP), Rs. 1.45 against the Canadian Dollar (CAD), and Rs. 3.08 against the Australian Dollar (AUD).
Conversely, it gained 58 paisas against the Euro (EUR) in today’s interbank currency market.
Source: Pro Pakistani